SEGMENT INFORMATION | 4. SEGMENT INFORMATION As of March 31, 2019, our reportable segments are: • the Utica Shale, which is served by Summit Utica; • Ohio Gathering, which includes our ownership interest in OGC and OCC; • the Williston Basin, which is served by Polar and Divide, Bison Midstream and Tioga Midstream (through March 22, 2019; refer to Note 17 for details on the sale of Tioga Midstream); • the DJ Basin, which is served by Niobrara G&P; • the Permian Basin, which is served by Summit Permian; • the Piceance Basin, which is served by Grand River; • the Barnett Shale, which is served by DFW Midstream; and • the Marcellus Shale, which is served by Mountaineer Midstream. Each of our reportable segments provides midstream services in a specific geographic area. Our reportable segments reflect the way in which we internally report the financial information used to make decisions and allocate resources in connection with our operations. The Ohio Gathering reportable segment includes our investment in OGC and OCC. Income or loss from equity method investees, as reflected on the statements of operations, solely relates to Ohio Gathering and is recognized and disclosed on a one-month lag (see Note 8) . Corporate and Other represents those results that are: (i) not specifically attributable to a reportable segment; (ii) not individually reportable; or (iii) that have not been allocated to our reportable segments for the purpose of evaluating their performance, including certain general and administrative expense items, natural gas and crude oil marketing services and transaction costs. Assets by reportable segment follow. March 31,2019 December 31, 2018 (In thousands) Assets (1): Utica Shale $ 206,621 $ 207,357 Ohio Gathering 640,226 649,250 Williston Basin 438,772 526,819 DJ Basin 150,663 166,580 Permian Basin 163,897 145,702 Piceance Basin 685,713 699,638 Barnett Shale 363,834 376,564 Marcellus Shale 206,447 208,790 Total reportable segment assets 2,856,173 2,980,700 Corporate and Other 47,238 44,181 Eliminations (2,821 ) (4,319 ) Total assets $ 2,900,590 $ 3,020,562 (1) At March 31, 2019 and December 31, 2018, Corporate and Other included $17.0 million and $9.6 million of capital expenditures relating to the Double E Pipeline Project. Revenues by reportable segment follow. Three months ended March 31, 2019 2018 (In thousands) Revenues (1): Utica Shale $ 7,495 $ 10,041 Williston Basin 34,199 28,424 DJ Basin 4,816 3,016 Permian Basin 4,619 — Piceance Basin 35,280 38,571 Barnett Shale 15,285 16,170 Marcellus Shale 6,197 7,825 Total reportable segments revenue 107,891 104,047 Corporate and Other 26,838 14,176 Eliminations (3,321 ) (903 ) Total revenues $ 131,408 $ 117,320 (1) Excludes revenues earned by Ohio Gathering due to equity method accounting. Counterparties accounting for more than 10% of total revenues were as follows: Three months ended March 31, 2019 2018 Percentage of total revenues (1): Counterparty A - Piceance Basin * 11 % (1) Excludes revenues earned by Ohio Gathering due to equity method accounting. * Less than 10% Depreciation and amortization, including the amortization expense associated with our favorable and unfavorable gas gathering contracts as reported in other revenues, by reportable segment follows. Three months ended March 31, 2019 2018 (In thousands) Depreciation and amortization (1): Utica Shale $ 1,908 $ 1,853 Williston Basin 5,436 5,609 DJ Basin 799 781 Permian Basin 1,072 — Piceance Basin 11,791 11,774 Barnett Shale (2) 4,330 3,757 Marcellus Shale 2,283 2,272 Total reportable segment depreciation and amortization 27,619 26,046 Corporate and Other 497 480 Total depreciation and amortization $ 28,116 $ 26,526 (1) Excludes depreciation and amortization recognized by Ohio Gathering due to equity method accounting. (2) Includes the amortization expense associated with our favorable and unfavorable gas gathering contracts as reported in other revenues . Cash paid for capital expenditures by reportable segment follow. Three months ended March 31, 2019 2018 (In thousands) Cash paid for capital expenditures (1): Utica Shale $ 101 $ 1,020 Williston Basin 8,023 5,888 DJ Basin 28,356 14,260 Permian Basin 7,057 16,145 Piceance Basin 1,226 2,644 Barnett Shale (2) (118 ) 37 Marcellus Shale 102 487 Total reportable segment capital expenditures 44,747 40,481 Corporate and Other 16,101 297 Total cash paid for capital expenditures $ 60,848 $ 40,778 (1) Excludes cash paid for capital expenditures by Ohio Gathering due to equity method accounting. (2) For the three months ended March 31, 2019, the amount includes vendor reimbursements of $1.1 million. During the three months ended March 31, 2019, Corporate and Other included cash paid of $0.3 million for corporate purposes; the remainder represents capital expenditures relating to the Double E Pipeline Project. We assess the performance of our reportable segments based on segment adjusted EBITDA. We define segment adjusted EBITDA as total revenues less total costs and expenses; plus (i) other income excluding interest income, (ii) our proportional adjusted EBITDA for equity method investees, (iii) depreciation and amortization, (iv) adjustments related to MVC shortfall payments, (v) adjustments related to capital reimbursement activity, (vi) unit-based and noncash compensation, (vii) change in the Deferred Purchase Price Obligation fair value, (viii) impairments and (ix) other noncash expenses or losses, less other noncash income or gains. We define proportional adjusted EBITDA for our equity method investees as the product of (i) total revenues less total expenses, excluding impairments and other noncash income or expense items and (ii) amortization for deferred contract costs; multiplied by our ownership interest in Ohio Gathering during the respective period. For the purpose of evaluating segment performance, we exclude the effect of Corporate and Other revenues and expenses, such as certain general and administrative expenses (including compensation-related expenses and professional services fees), natural gas and crude oil marketing services, transaction costs, interest expense, change in the Deferred Purchase Price Obligation fair value and income tax expense or benefit from segment adjusted EBITDA. Segment adjusted EBITDA by reportable segment follows. Three months ended March 31, 2019 2018 (In thousands) Reportable segment adjusted EBITDA Utica Shale $ 6,193 $ 8,715 Ohio Gathering 9,210 10,477 Williston Basin 18,734 15,970 DJ Basin 2,673 1,321 Permian Basin (550 ) — Piceance Basin 25,999 27,914 Barnett Shale 11,374 9,859 Marcellus Shale 5,142 6,676 Total of reportable segments' measures of profit or loss $ 78,775 $ 80,932 A reconciliation of income or loss before income taxes and income or loss from equity method investees to total of reportable segments' measures of profit or loss follows. Three months ended March 31, 2019 2018 (In thousands) Reconciliation of loss before income taxes and loss from equity method investees to total of reportable segments' measures of profit: Loss before income taxes and loss from equity method investees $ (36,266 ) $ (5,402 ) Add: Corporate and Other expense 14,159 10,623 Interest expense 17,527 15,122 Deferred Purchase Price Obligation 4,427 21,658 Depreciation and amortization 28,116 26,526 Proportional adjusted EBITDA for equity method investees 9,210 10,477 Adjustments related to MVC shortfall payments (4,199 ) - Adjustments related to capital reimbursement activity (715 ) 40 Unit-based and noncash compensation 2,526 1,962 Gain on asset sales, net (961 ) (74 ) Long-lived asset impairment 44,951 - Total of reportable segments' measures of profit $ 78,775 $ 80,932 Adjustments related to MVC shortfall payments are recognized in gathering services and related fees (see Note 3). Contributions in aid of construction are recognized over the remaining term of the respective contract. We include adjustments related to capital reimbursement activity in our calculation of segment adjusted EBITDA to account for revenue recognized from contributions in aid of construction. Adjustments related to MVC shortfall payments by reportable segment follow. Three months ended March 31, 2019 Williston Basin Piceance Basin Barnett Shale Total (In thousands) Adjustments related to expected MVC shortfall payments: $ (5,549 ) $ (103 ) $ 1,453 $ (4,199 ) There were no adjustments related to MVC shortfall payments for the three months ended March 31, 2018. |